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Fundraising Today and Tomorrow: The Next Generation of Giving - The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value
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Fundraising Today and Tomorrow: The Next Generation of Giving - The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value

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Ken Kuhler, Interactive Strategy Manager, Blackbaud, discussed how to apply next generation trend data to your multi-channel, multi-generational fundraising and engagement efforts including practical …

Ken Kuhler, Interactive Strategy Manager, Blackbaud, discussed how to apply next generation trend data to your multi-channel, multi-generational fundraising and engagement efforts including practical tools and techniques, and real-world case studies.

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  • Dennis
  • Increased competition for mindshare / share of wallet Fundraising down from 2007 – Giving USA 2011, The Center for Philanthropy at Indiana University, 2011
  • Q18: Which of the following charitable giving methods have you used in the past two years? Please select all that apply.
  • The power of the platform is evident in the results. Luminate is the unchallenged leader in digital communications and fundraising for nonprofits. In 2011 Luminate clients used Luminate software and services to raise more than $1.35 billion online, send more than 4 billion email communications, power more than 32 million advocacy actions and manage relationships with more than 248 million constituents.In fact, Luminate’s online fundraising tools raised 3x what any other single tool or company raised in 2011.
  • Released February 2013, Data from over 3,144 NPOs,24 months of overall giving data Want to download? Sign up for NP Engage and download the report Online giving was up close to 11% in 2012 compared to 2011
  • Smaller organization based in Canada, whose mission is to provide clean drinking water to African Communities
  • Examples of getting attention in a multi-channel world: it’s about having great content in the right channels and with all the hooks to get it disseminated broadly. It’s also about usability that will drive longer and deeper engagement on your digital properties – something we offer as a service to our clients.HSUS – Does a fantastic job using Luminate CMS. They found that using Luminate CMS they were able to double their mobile traffic in just a few short months. They also do an incredible job of interweaving content through a variety of social media so users can share it and engage in whatever channel they are in.UNICEF USA – UNICEF worked with our User Experience team on a number of projects including a virtual gift store and their mobile site. Their mobile optimized site won best in class this year from the Interactive Media Awards. Another thing to point out on Unicef is how they use content to drive response in a disaster – they’ve got a great “emergency” version of their site that they can literally launch in minutes for any disaster – Tsunami, Earthquake, anything – and it points to donation forms that are preconfigured to accept funds for those emergencies. You may not be in the disaster relief business, but having the ability to make changes like this on the fly is important for any organization because your cause could become headline news tomorrow.

Transcript

  • 1. GROWING CONSTITUENT ENGAGEMENT LOYALTY, AND LIFETIME VALUE Constituent Engagement Journey:
  • 2. • Current Landscape & Trends • Constituent Engagement Fundamentals • The Evolution of Nonprofit Operations AGENDA
  • 3. The Nonprofit Landscape
  • 4. Total Fundraising 13%* In Canada from 2011 Competition for Awareness and Support
  • 5. # of Nonprofits 161,000 in Canada Competition for Awareness and Support
  • 6. 3000+ Messages Targeting Supporters Every Day Competition for Awareness and Support
  • 7. New Donor Acquisition 23.4% since 2006 Competition for Awareness and Support Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter Results
  • 8. Renewals & Lifetime Value Mostly Flat Average Annual Gift/Attrition Rate = LTV Competition for Awareness and Support
  • 9. Deepen Relationships & Build Loyalty
  • 10. FUNDRAISING EMPHASIS: MATURES Matures Boomers Gen X Gen Y
  • 11. GENERATIONAL GIVING $0. $100. $200. $300. $400. $500. $600. $700. $800. $900. $1,000. $1,100. $1,200. 30% 40% 50% 60% 70% 80% 90% % Giving Totalannualgiving Boomers Gen X Matures Gen Y 79% Give 5.8 M donors $831 yr/avg 4.5 charities $4.8 B/yr62% Give 4.5M donors $639 yr/avg 4.0 charities $2.9 B/yr 78% Give 6.9 M donors $942 yr/avg 4.9 charities $6.5 B/yr 87% Give 3.1 M donors $1507 yr/avg 7.0 charities $4.7 B/yr
  • 12. GEN Y GEN X BOOMERS MATURES 55% 54% 58% 55% 45% 55% 35% 31% 21% 35% 47% 56% 36% 39% 38% 30% 29% 33% 40% 37% 11% 23% 36% 58% 22% 29% 37% 34% 22% 24% 29% 29% 24% 20% 25% 20% 25% 19% 11% 9% 15% 14% 12% 14% 5% 9% 15% 18% 7% 5% 4% 9% 4% 9% 4% 4% 5% 8% 4% 3% 12% 4% 2% - 6% 4% 3% 2% 1% 2% 3% 2% 56% 41% 41% 36% 35% 32% 32% 26% 22% 15% 13% 12% 6% 5% 5% 4% 4% 2% Checkout Donation Honor/Tribute Pledge at Event Door to Door* Street Canvassing* Email* Radio/TV* Will/Planned Gift Social Networking Site GIVING AMOUNTS
  • 13. Constituent Expectations Have Changed.
  • 14. Constituents Want to Engage on Their Terms & in Their Channels
  • 15. ONLINE FUNDRAISING CONTINUES TO GROW
  • 16. THE STATE OF ONLINE FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT More good news - Online giving increased 13.7% for the three months ending January 2013 as compared to the same period in 2012 Even more good news – No matter what online benchmark study you look at, revenue is growing, sustained giving is growing and housefile size is up
  • 17. ONLINE FUNDRAISING GROWTH HAS KEPT PACE WITH RETAIL E-COMMERCE Sources: Convio benchmark reports 2007-2012 and eMarketer.com
  • 18. .. BUT PERFORMANCE VARIES WIDELY * Excludes major, corporate gifts, and planned giving. Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011 5-20% Raised Online >25% Raised Online <5% Raised Online
  • 19. Peer Solicitation Is Broadly Accepted 52% 41% 28% 22% 15% 8% Peer to Peer Mail Email Social Media Phone Text % say appropriate solicitation channel (rank ordered by very important –blue) Did you know? Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.
  • 20. 9/4/2013 Blackbaud Confidential 20 PEER TO PEER / SOCIAL FUNDRAISING
  • 21. Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate VALUE OF MULTI-CHANNEL ENGAGEMENT Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use. 34.4% 50.9% Mail +48% Multi-Channel $96 $187 Mail +95% Multi- Channel $314 $694 Mail +121% Multi-Channel
  • 22. MULTI-CHANNEL GROWS TOTAL REVENUE $28M $28M $47M $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 1990 2000 2010 Millions Online Direct Mail
  • 23. Multi-Channel Strategy
  • 24. If You Could… THE VISION: CONSTITUENT ENGAGEMENT • Anticipate your constituents’ needs • Know their interests, passions & preferences • Offer more relevant interactions & opportunities to engage You Would… Improve acquisition & referrals Establish lifetime relationships Grow support & fundraising
  • 25. Constituent Experience • Disjointed constituent experience • Fragmented messaging from a variety of channels • Less engagement Current Landscape:
  • 26. • Unified constituent experience Goal: Constituent Experience • Integrated messaging across a variety of channels • Optimized engagement
  • 27. Better Engagement with Supporters = Better Results for Your Organization
  • 28. Constituent Engagement Fundamentals
  • 29. • Constituent Centricity • Presence in Multiple Channels • Consistent Branding • Integrated Process • Integrated Measurement Constituent Engagement Fundamentals
  • 30. CONSTITUENT CENTRICITY • Align processes and communication to respect constituent preferences, needs and interests • Tailor channel mix, content and program participation and message frequency • Ask, “What matters to a constituent?”
  • 31. A Single Email with Conditional Content Donor Version Survivor Version CONSTITUENT CENTRICITY
  • 32. CONSTITUENT CENTRICITY
  • 33. Direct Mail Email Web Page PRESENCE IN MULTIPLE CHANNELS
  • 34. PRESENCE IN MULTIPLE CHANNELS • Get the right message in front of the right person at the right moment.
  • 35. CONSISTENT BRANDING Envelope back Integrated tiger appeal results show 40% better response rate Offline Appeal & Envelope Online Appeal, Included Envelope Image
  • 36. YEAR OF THE TIGER A MULTIMEDIA YEAR LONG EFFORT WWF: For 1st time ever, heads of state convene 2 try 2 save tigers. Tell the US 2 commit to global tiger conservation. http://bit.ly/dp0ovd (reply STOP 2 unsub) Direct Mail Email Social Media TV (Custom Web) Outdoor Ads Mobile Web Celebrity Leadership
  • 37. INTEGRATED PROCESS Frequency Target Q2week1 Q2week2 Q2week3 Q2week4 Q2week5 Q2week6 Q2week7 Q2week8 Q2week9 Q2week10 Q2week11 Q2week12 General Communications eNewsletter Weekly - Fridays Subscribers Quarterly Update mailer 2nd Week / Quarter $50+ donors Gala Promotion Email Biweekly - Tuesday General Direct Mail Once $100+ Donors Telemarketing $200+ Donors Mother's Day Campaign Email ~Biweekly - Thursday Direct Mail Once Prospects, Donors Telemarketing Select targets Inbox / Received Send Event
  • 38. • Establish metrics that: • Measure donor behavior and campaign performance across channels • Focus on long-term value • Collect and aggregate constituent data to correlate and extract meaningful information INTEGRATED MEASUREMENT
  • 39. CROSS-CHANNEL CONTACT INFORMATION
  • 40. KEY ACQUISITION METRICS TRACKED
  • 41. DONOR CHANNEL MIGRATION TRACKED
  • 42. Constituent Engagement Fundamentals – Difficult Without Organizational Alignment • Constituent Centricity • Presence in Multiple Channels • Consistent Branding • Integrated Process • Integrated Measurement
  • 43. The Evolution of Nonprofit Operations
  • 44. • Minimal Online Marketing • Calendar-Based Campaigning • Not Financially Committed to Second Channel • Thematically Integrated • Limited sensitivity to solicitation frequency • Decisioning beyond RFM • Shared Metrics • Some consolidation of data across channels Coordinated OptimizedTraditional • Separate Metrics & Team for Online Marketing • No Calendar / Campaign Coordination • 2nd channel constitutes 5-20% Direct Response Revenue • Separate databases for online/offline • Unified Strategy & Real- time data integration • Measures Success Across Channels, Not By Channel • Donors’ behaviors and interests drives communication stream • Shared budget and resources Early Stage WHERE ARE YOU?
  • 45. • Integrated marketing sophistication and size don’t closely correlate. WHERE ARE YOU?
  • 46. Aggregate and improve constituent data Consistent messages across channels Increased personalization & relevance Dynamic response to interactions Optimize channel mix & message cadence THE TRAJECTORY OF NP EVOLUTION Aggregate and improve constituent data
  • 47. Keys to Evolution • Organizational Alignment • Technology / Infrastructure
  • 48. Traditional • Separate Metrics & Team for Online Marketing • No Calendar / Campaign Coordination • 2nd channel constitutes 5- 20% Direct Response Revenue • Separate databases for online/offline Communications Development IT Others (?)Government Affairs Traditional ORGANIZATIONAL ALIGNMENT
  • 49. Coordinated Coordinating Teams Communications Development Government Affairs IT Coordinated • Thematically Integrated • Limited sensitivity to solicitation frequency • Decisioning beyond RFM • Shared Metrics • Some consolidation of data across channels ORGANIZATIONAL ALIGNMENT
  • 50. Optimized Coordinating Teams Development Online Communications Marketing Optimized • Unified Strategy & Real-time data integration • Measures Success Across Channels, Not By Channel • Donors’ behaviors and interests drives communication stream • Shared budget and resources ORGANIZATIONAL ALIGNMENT
  • 51. Support Business Units Infrastructure Challenge Track Performance Add New Channels Coordinate Departments Integrate Systems Understand Data
  • 52. REMEMBER: IT IS AN EVOLUTION. • Identify where you are and map your key 2013 steps now…today, while you’re thinking about it! • Every step toward Constituent Engagement will have an impact on your bottom line. • Start with fundamentals. • Evolving understanding of metrics can drive you forward faster. • Be aware of opportunities to evolve the operational structure – shared goals, team alignment, technology
  • 53. IN CONCLUSION • More donors does not mean more engagement or revenue but more engaged donors will mean more revenue/LTV. • Donors feel more engaged and more inclined to give if they are hit up on multiple channels with consistent messages • Therefore, your organization needs to be organized to ensure a consistent and integrated experience on multiple channels. No silo’s.
  • 54. WANT MORE? DOWNLOAD OUR RESEARCH.